Swiss fintech Leonteq with a substantial presence in Asia reported record results for a second consecutive year. It also said an executive is stepping down.

Leonteq increased its pre-tax profit by eleven percent last year to 193.3 million francs ($209.9 million), although its net profit was roughly unchanged for the year at 156.4 million francs due to significantly higher tax expenses compared to 2021 which benefitted from a tax loss being carried forward, the firm said Thursday in its annual results.

For this year, Leonteq expects its pre-tax profits will be roughly half of what they were last year, saying they will fall between 70 and 100 million francs.

CFO Departs

The structured investment solutions company also announced that deputy CEO and CFO Marco Amato will be stepping down at the end of August 2023. A search for his replacement was initiated by the board of directors. He also served as interim CEO from October 2017 until April 2018.

Fee income fell by a third last year due to «subdued levels» of client activity in most of its regions. A significant decline in large ticket transactions also weighed on income.

Dividends and Buybacks

Leonteq will propose a dividend of 4 francs at its annual general meeting on March 30, representing a one-third increase in the 3 francs dividend it issued in 2021 to be paid in equal amounts from retained earnings and capital contribution reserves.

The board has also approved a buyback program of up to 18 million francs of Leonteq shares.

Together, the dividend and share buyback corresponds to a distribution of 5 francs per share with a 58 percent payout ratio of the Group's net profit which is in line with previous guidance for over 50 percent.

Starting this year, Leonteq continues to target a payout ratio of more than 50 percent of the group's net profits, to pay an annual dividend of at least 2.00 francs per share combined with plans to launch annual share buyback programs should financial results permit. The buybacks are expected to start at the beginning of April and run through the end of the year.